Technology

China figured out how to sell EVs. Now it has to bury their batteries.

Source

MIT Technology Review

Published

Dec 18, 2025

TL;DR

AI Generated

As China's early electric vehicles (EVs) age out, a flood of used batteries is hitting the market, prompting challenges in recycling and disposal. With nearly 60% of new cars sold in late 2025 being electric or plug-in hybrids, the country faces pressure to manage the growing volume of retired EV batteries. The strain on China's battery recycling industry has led to the emergence of a gray market that often disregards safety and environmental standards. While efforts are being made to establish formal recycling networks, the pace struggles to keep up with the increasing battery waste. Major EV manufacturers in China, like BYD and CATL, are implementing recycling programs to recover materials from old batteries, emphasizing the need for a comprehensive end-of-life system for EV batteries.

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Is carbon removal in trouble?

Microsoft, a major player in the carbon removal market, has reportedly paused its carbon removal purchases, causing concern in the industry. Carbon removal technologies aim to extract carbon dioxide from the atmosphere for permanent storage. Microsoft, which aims to become carbon-negative by 2030, has been a significant buyer of carbon removal contracts. The company's decision to pause purchases may impact the industry's growth and reliance on corporate support. Industry experts suggest that government mandates and policies are needed to ensure the scalability of carbon removal efforts.

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